3-Month Treasury Bill Secondary Market Rate, Discount Basis
TB3MS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.25
Year-over-Year Change
-18.27%
Date Range
4/1/1942 - 7/1/2025
Summary
The 3-Month Treasury Bill Secondary Market Rate represents the short-term borrowing cost for the U.S. government in the secondary market. This rate is a critical benchmark for short-term interest rates and serves as an important indicator of market expectations and economic conditions.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This rate reflects the yield investors receive when trading 3-month Treasury bills in the secondary market on a discount basis. Economists and financial analysts closely monitor this rate as a key indicator of near-term monetary policy expectations and overall economic sentiment.
Methodology
The rate is calculated based on daily trading prices of 3-month Treasury bills in the secondary market, with data collected and reported by the Federal Reserve.
Historical Context
Central banks, investors, and policymakers use this rate to assess short-term economic conditions and make informed decisions about monetary policy and investment strategies.
Key Facts
- Represents the yield on 3-month U.S. Treasury bills in the secondary market
- Serves as a benchmark for short-term borrowing costs
- Reflects market expectations of near-term economic conditions
FAQs
Q: What does the TB3MS rate indicate?
A: The TB3MS rate shows the short-term borrowing cost for the U.S. government and serves as a key indicator of market expectations and economic conditions.
Q: How often is this rate updated?
A: The rate is typically updated daily, reflecting the most recent trading prices in the secondary market for 3-month Treasury bills.
Q: Why do investors care about this rate?
A: Investors use this rate to assess short-term investment opportunities and gauge potential changes in monetary policy and economic outlook.
Q: How does this rate relate to Federal Reserve policy?
A: The TB3MS rate provides insights into market expectations about potential Federal Reserve interest rate decisions and overall economic conditions.
Q: What are the limitations of this rate?
A: While informative, the rate represents a snapshot of market conditions and should be considered alongside other economic indicators for comprehensive analysis.
Related Trends
Citation
U.S. Federal Reserve, 3-Month Treasury Bill Secondary Market Rate, Discount Basis [TB3MS], retrieved from FRED.
Last Checked: 8/1/2025